Increase Profits by Reducing "fixed" Expenses

When it comes to business budgets many business owners take it for granted that there are fixed expenses and variable expenses. The assumption is that the most logical way to increase profit is to increase sales and production. Business owners try their best to influence variable expenses downward, and don't see the point of considering fixed expense.

But what if some of the so-called "fixed" expenses could be reduced, without changing production or employment levels? Profits would go up. 

What are some "fixed" expenses?

• Cost of heating and cooling a facility
• Management of solid waste
• Transportation Costs
• Water consumption and treatment 

Reducing these "fixed" expenses can be done sometimes with little or no capital investment. The Shoreline Green Business Program has a comprehensive checklist and links to resources business owners can use to start saving money.

But wait. How can you measure the results to know which changes provide the biggest savings? Without this knowledge it becomes difficult to set priorities or enroll employees into making changes that will provide savings. 

Business owners that know their baseline costs of operations are well positioned to track incorporated efficiencies and associated savings.

There are resources available to help companies determine their business baseline costs. The City of Seattle Office of Sustainability and Environment has a Benchmarking and Reporting program. Their mission is "to make green building standard practice in Seattle."

Their Benchmarking tool called Portfolio Manager that can be used to take an initial measurement and with help from local utilities automate tracking of energy use.

For waste management Cleanscapes, serving Seattle and Shoreline can send one of their representatives out to analyze your business waste stream and develop waste reduction strategies that save you money.

Waste Management in Snohomish offers an "eco-consultant team" that serves the same purpose.

For tips on Water conservation and Transportation options the "Working Green" pages on the Shoreline Green Business Program website are full of resources for measuring and conserving for the benefit of the planet and your bottom line.